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An empirical examination of the effects of land tenure on housing values in Kampala, Uganda
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management.
2015 (English)In: International Journal of Housing Markets and Analysis, ISSN 1753-8270, E-ISSN 1753-8289, Vol. 8, no 3Article in journal (Refereed) In press
Abstract [en]

Purpose – To investigate the impact of land tenure on housing values in metropolitan Kampala.

Design/methodology/approach – A hedonic model is used to test the relationship between housing prices, land tenure and housing attributes using a cross-sectional dataset of transaction prices for 590 newly built houses sold in 2011.

Findings – Public leaseholds in Kampala offer a premium of 23% in housing values compared to freeholds. This could be due to lack of formal systems for assessment of leasehold premium and ground rent charges, an arrangement which can offer utility to the lesse at the expense of lessor thereby making leaseholds popular on the market, or the developers’ lack of information on the benefits of freehold causing them to value leaseholds higher than freeholds. Similarly, private mailo tenure offers a 12% premium in housing values compared to freeholds. There is no significant impact of Kabaka’s mailo tenure on housing values. When compared to private mailo, public leaseholds offer an 11% premium in housing values.

Practical implications– There is need to advance leasehold as the urban land tenure for Uganda, disentangle multiple-layers of ownership on mailo land and roll out the land fund to enhance growth of the housing market in Kampala.

Originality/value –This paper is the first of its kind to empirically examine the impact of mailo land tenure on housing values. Findings provide useful insights for investors and policy makers in the housing sector in Uganda.

Place, publisher, year, edition, pages
2015. Vol. 8, no 3
Keyword [en]
hedonic modeling, housing values, Kampala, land te nure
National Category
Construction Management
Identifiers
URN: urn:nbn:se:kth:diva-167364OAI: oai:DiVA.org:kth-167364DiVA: diva2:813257
Note

QP 201505

Available from: 2015-05-22 Created: 2015-05-22 Last updated: 2017-12-04Bibliographically approved
In thesis
1. Modelling of Construction Safety Performance and Housing Markets in Kampala, Uganda
Open this publication in new window or tab >>Modelling of Construction Safety Performance and Housing Markets in Kampala, Uganda
2015 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

The construction industry in Uganda is characterized by a high incidence rate of accidents. During the late 1990s, an annual average of 49 accidents were reported in the construction industry while during the period 2001 to 2005, the annual average for this sector was 103 cases. Between 2006 and 2010, more construction accidents were registered with a total of 49 fatalities reported in Kampala metropolitan area alone. This trend has continued up to the present date. Meanwhile, the demand for housing in Uganda exceeds supply resulting into a huge housing deficit. Rapid population growth without matching housing facilities has been cited as the main cause of the housing deficit. Land holding in Uganda is characterized by multiple rights of ownership, and high social costs including land conflicts and violent evictions. Reportedly, these developments are affecting the performance of the housing sector. Given the above background, the aim of this thesis is to propose policies and strategies for improvement of construction safety performance and the housing sector in Uganda.

The thesis is based on two broad themes i.e. construction safety performance and housing markets. Although the research themes are unique in their own right, they both address pertinent issues concerning the construction industry in Uganda. Whereas the first theme investigates accidents as events that affect the production of construction infrastructure (including housing), the second theme handles topical issues which affect the demand and supply for housing in Uganda. The study area is Kampala, the capital city of Uganda. In addition to the overview chapter, this thesis contains four research papers. The first two papers relate to theme on construction safety performance whereas the last two papers relate to theme on housing markets.

The first paper investigates the causes of construction accidents in Kampala, establishes the prevailing injury and fatality rates, examines spatial patterns in occurrence of accidents and thereafter, proposes strategies of mitigating accidents. The second paper investigates how undiscovered rework (defined as unnecessary effort of redoing a process or activity that is incorrectly implemented the first time) leads to accidents, develops a computer based model for simulating occurrence of accidents on projects and thereafter, proposes strategies of reducing rework related accidents. Evidently, the first paper is explorative investigating construction safety issues at industry level, whereas the second paper is more specific studying safety dynamics at project level. The third paper investigates how the choice of land tenure system affects housing values and thereafter, proposes strategies of mitigating the negative effects of land tenure on the housing market. Finally, the fourth paper examines how population changes affect the housing needs of a city, develops a computer based model for simulating the city population and housing needs, and experiments a plethora of housing policy proposals.

Overall, findings of this thesis such as the concept of spatial dependence in occurrence of construction accidents, where accidents at one location were found to be associated with those which occur in the neighborhood; the phenomenon of congestion, defined in this thesis as the existence of high building density amidst many fulltime workers on site, and its significant association with accidents occurrence; and the uniqueness of private mailo land tenure system and the 12% premium it offers in housing values amidst high social costs, are unique contributions to the existing body of knowledge.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2015. vii, 40 p.
Series
Trita-KTH-CEFIN-DT, 12
Keyword
accidents, construction industry, housing markets, spatial rgression modelling, system dynamics
National Category
Engineering and Technology
Research subject
Real Estate and Construction Management
Identifiers
urn:nbn:se:kth:diva-166816 (URN)
Public defence
2015-06-08, F3, Lindstedsvagen 26, KTH, Stockholm, 13:00 (English)
Opponent
Supervisors
Projects
None
Funder
Sida - Swedish International Development Cooperation Agency
Note

ISBN: 978-91-87111-05-01

QC 20150522

Available from: 2015-05-22 Created: 2015-05-18 Last updated: 2017-02-23Bibliographically approved

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